In recent years, Kerry has acquired several other U.S. companies. In 2015, the firm, along with Wellmune, purchased Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry. It also acquired Red Arrow Products, a Wisconsin-based provider of smoke flavorings for meat, in a deal valued at $735 million. In 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients in the U.S. Additionally, in 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With its acquisition of Ganeden, Kerry is making significant strides into the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory advantages. The probiotics company, which produces a strain suitable for incorporation into a variety of foods and beverages, is well-positioned to provide added value to its new parent company. Michael Bush, President and CEO of Ganeden, recently shared with Food Dive that the company has “essentially invented this market space” and has been doubling its size every few years. “We have done a lot of work. We were the first in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s difficult to list them all,” he stated.
To capitalize on the growing probiotics trend, manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo purchased probiotics beverage maker KeVita and recently launched its Tropicana Essentials Probiotics line. Additionally, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment round in March to support Farmhouse Culture, a startup focused on fermented and probiotic foods and beverages.
According to a report by BCC Research, the global probiotics market reached $34 billion in sales in 2015, with the food and beverage industry accounting for 73% of that total, or $24.8 billion. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, potentially reaching around $74.7 billion by 2025.
Clearly, the Kerry Group is strategically positioned by acquiring Ganeden at this point in the market. This move not only strengthens its presence in the health and wellness arena but also positions the company to better leverage developments in the rapidly expanding probiotics and functional foods markets. Furthermore, as Kerry continues to innovate, the introduction of products like 500 mg calcium chews could further enhance its portfolio, tapping into the ongoing demand for health-oriented offerings. With this acquisition, Kerry will be in an even stronger position to explore opportunities in sectors that include 500 mg calcium chews, thereby maximizing its growth potential in the health and wellness landscape.